The government of New South Wales has announced the first tracks have been laid on the Sydney's A$2.1bn ($1.6bn) light rail-extension project.

The 12km route connects Circular Quay and the central business district (CBD) to Randwick and Kingsford via Surry Hills and the Moore Park sporting precinct.

It is reported that around 15 of 31 construction zones are now live including work on the tunnel under Anzac parade at Moore Park. More tracks will be laid in multiple zones over the coming months, the government said in a statement.

"Around 15 of 31 construction zones are now live including work on the tunnel under Anzac parade at Moore Park."

New South Wales' minister for transport and infrastructure Andrew Constance said: “We all know congestion is getting worse in Sydney and with daily trips to the city centre expected to increase by almost 25% by 2031, this will help bust congestion.

“Light-rail will move up to 13,500 customers in both directions between 7am and 7pm and when combined with express and local bus services, will bring increased transport capacity of up to 30% in the morning peak.”

During the construction phase, the project is expected to create close to 1,500 jobs. When in operation in 2019, the route will offer high-frequency turn up and go light-rail services up to every four minutes.